October 20, 2000
Letter of Intent
Dear partners of the dotLAW business initiative:
This Letter of Intent will follow the discussions we had at our meeting in Atlanta and serve as additional indication of our mutual intent to enter into certain agreements under which dotMD, Inc., a Georgia corporation ("dotMD"), will provide certain consulting services to the partners of the dotLAW business initiative ("dotLAW").
dotMD, Inc. is an established Top Level Domain operator focused on the healthcare industry. Through the sale of healthcare domain names and the creation of a healthcare MetaDirectory, dotMD has built a framework to organize healthcare on the web under ".md".
dotMD has a valuable knowledge base to share with dotLAW, as the similarities between these two operations are great. Both operate a managed Top Level Domain that is focused on a distinct professional service industry. In addition, both dotMD and dotLAW are restricted and sponsored domains for professionals. As dotMD has an ownership percentage in dotLAW, dotMD is an enthusiastic supporter of dotLAW and is willing to assist in all areas of the business.
All dotLAW registry functions and other technical support, from the application process through to the initial year of operations, will be outsourced to dotMD under a contract that will enable dotLAW to leverage dotMD’s existing registry infrastructure. dotLAW will be able to take advantage of dotMD’s expertise in operating a Top Level Domain, cutting edge technology, solid financial position, marketing experience, and experienced management.
The outsourcing of the registry functions to dotMD will allow dotLAW to use dotMD’s established, stable and efficient registering methodology. dotMD’s web-based applications are developed with state-of –the-art technologies to provide an unparalleled level of functionality, usability and security. In addition, dotMD’s proprietary registration process includes logic to develop numerous second and third level domain names for any registrant. dotMD currently maintains the master directory of all the .md domain names which include registrations, modifications, transfers, re-registrations or deletions for new and existing domain names.
The registration process is automated, with automatic credit card billing and the automatic instantaneous creation of domain entries, user accounts, email accounts. To further speed the registration process, dotMD has implemented real-time credential verification for medical professionals.
dotMD is an operating registry that has a proven technical infrastructure. In addition to the sale and registration of domain names to healthcare and law professionals, dotMD will also offer email addresses, web hosting, web sites, marketing support, and content links. Furthermore, the registry will offer record update services within the setting of the restricted and organized domain.
As well as selling domain names and related professional services, dotMD is in the process of creating the MetaDirectory. The MetaDirectory is an interactive index of medical resources that allows users to find aggregated condition-specific resources based on the user’s declared preferences. Medical resources are organized around health conditions. The MetaDirectory concept can also be applied to legal resources.
Currently dotMD has the necessary personnel available to assist dotLAW through dotLAW’s 1st year of operation. dotMD has a core staff of software and hardware engineers with extensive experience in the technology industry. The number of customer service, sales and marketing staff is expanding in proportion to the number of registrations. At the present time there is approximately 1 customer support person per 10,000 registrations, and with economies of scale, we expect to reach a level of 1 per 20,000 registrants in the future.
dotMD has the excess capacity and resources that will be required to provide registry services for dotLAW. The dotMD infrastructure has been designed for easy and extensive scalability anticipating growth from dotMD and, therefore, allowing for similar growth from dotLAW.
dotMD maintains the physical and technical infrastructure which will be used by .md and .law’s registry. Hardware is leased and maintained by a top-tier hosting facility, Exodus Communications in Sterling, Virginia, USA. The hardware is housed in a very secure environment with limited access. Exodus provides expandable bandwidth, 24 hour reliability, on site hardware and software service, uninterruptible power supply and redundant systems. The Exodus facility has the capacity to handle the anticipated growth in both .md and .law.
dotMD’s real time nightly backups are through Exodus’ DataVault facility. The architechure is fully redundant, for example dual firewall, dual internet access, clustered database serving and multiple application servers.
For network security, dotMD servers are behind a CheckPoint Firewall system that uses a dedicated Sun Solaris UNIX kernel. This process shields the internal IP addresses and network structure of the dotMD servers from any outside attacks.
dotMD has implemented a state of the art infrastructure that provides rules-based access control, strong authentication and SSL encryption. A user ID and password pair will authenticate the administrative user. All sensitive data transferred over the public Internet will be encrypted using Secure Sockets Layer encryption (Version 3.0). Digital certificate authentication will be required for some functions.
dotMD generates a steady flow of recurring revenues from licensing of domain names and hosting of websites. As the MetaDirectory is branded and expanded through the domain, additional revenues will come from e-commerce, information and data management, sponsorships, advertising and co-branding opportunities.
By the end of 2001, dotMD expects to have over 55,000 registered .md domain names, generating revenue of close to $35 million per year.
dotMD, along with the other investors, will ensure that the necessary financial resources are available in order for dotLAW to launch operations.
As for insurance, dotMD has a agreement with Travelers Insurance Group for all the necessary insurance required to run the .md Top Level Domain. If additional insurance coverage is required to provide additional registry services in connection with the operation of dotLAW, dotMD will acquire additional coverage.
dotMD was formed in 2000 and the dotMD domain presently has over 10,000 domain names registered, including doctors, health care providers, medical industry companies and professionals.
dotMD has established a plan for creating widespread awareness through using marketing communications directed at primary constituencies. dotMD plans focus on offering a solution to today’s crowded and confusing landscape of separate healthcare web sites. Likewise, dotLAW will also be offering a solution to the same issues and will be able to learn from dotMD’s experiences.
dotLAW and dotMD each seek to be branded as a comprehensive and premium site for their respective professional sectors. dotLAW will be able to review dotMD’s launch and marketing initiatives in order to gain knowledge from dotMD’s experiences.
The dotMD marketing team has signed reseller various agreements,including recognized domain name registrars (ex. register.com)and healthcare specific resellers.
The .md domain is home to a number of healthcare specific sites including:
http://www.perfectpractice.md/ (web-based physician practice management)
http://www.centerorthopedic.com/ (Orthopedic Physicians)
http://www.medvault.md/flash.htm (Hospital IT)
http://www.surgicalnurse.md/ (Nurse Placement)
http://www.eye.md/ (Retinal Specialists)
http://www.ghi.md/ (Physician CME)
http://www.corium.md/ (Transdermal Medication Delivery systems)
http://cosmeticsurgerygeorgia.md/ (Plastic Surgery Group Practice)
http://www.wrmayfield.md/ (dotMD physician page)
Through a February 2000 agreement with the country of Moldova and Domain Name Trust, Inc., dotMD, Inc. acquired the exclusive rights to market and manage the .md Top Level Domain for 25 years. The agreement calls for Moldova to receive a royalty payment based on the sales of domain names. The agreement also established the dotMD Foundation, a foundation focused on fostering the advancement and delivery of healthcare in Moldova and other countries.
The executive and management team of dotMD is made up of experienced, technologically adept professionals. These individuals have significant expertise in management, healthcare, internet-based businesses, marketing, finance, business development and strategy. dotMD, headquartered in Atlanta, Georgia, expects that staffing will reach 75 by the end of 2001.
At this time, dotMD is developing a board of directors that will possess expertise in healthcare, the Internet and growth stage companies. Simultaneously, dotMD is developing a prestigious medical board that will be comprised of international, well-respected physicians from all specialties.
Strategic partners include Exodus Communications backed by technology partnerships with SUN, Oracle, bigIP among others. Content and database strategic relations are in place or under development with Standard & Poor, HealthSCOUT, Hayes Directories, MedicineNet, Vicinity and others.
In summary, we believe that dotMD will prove to be an excellent business partner for dotLAW. Through a close working relationship, dotLAW will be able to leverage dotMD’s experience from operating a managed domain for professionals.
Respectfully submitted by: